Richful Lube Additive Co. and Farabi Petrochemicals have inked an agreement to build the first full-fledged lubricant additive factory in Saudi Arabia.
Farabi announced the deal Wednesday in a LinkedIn post, saying the project will combine Richful’s market insight and research and development experience with Farabi’s local manufacturing presence to make products for the Saudi finished lubricant market.
The post said the factory will be built in Yanbu, home to a Saudi Aramco fuels refinery and a Luberef base oil plant, providing local raw materials. It also said that the factory will make additive components such as detergents, dispersants, zinc dialkyldithiophosphates and antioxidants, as well as additive packages.
Farabi did not disclose the cost of the project, the breakdown of the company stakes in the joint venture, nor a timeline for opening.
Richful, which is based in Xinxiang, China, is one of several lubricant additive companies that have sprouted in China in recent years and set a goal of becoming significant players in the additive package market – a global market long dominated by Infineum, Lubrizol, Chevorn Oronite and Afton Chemical.
They generally begin as suppliers as additive components and then work to develop the know-how to develop additive packages, which are blended with base stocks to produce finished lubes.
Richful does supply additive packages but has been working the past few years to expand its portfolio to include packages for automotive lubricants meeting the latest performance specifications.
Farabi produces and supplies a range of petrochemicals, from surfactants and solvents to paraffins, raw materials for detergents and fuel additives. It currently supplies process oils, heat transfer fluids and some lubricants but no lubricant additives.